Increase in TIN uptake offers hope for more domestic revenue
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NOVEMBER 5, 2021 | WWW.AVIATIONGHANA.COM
Increase in TIN uptake Airlink
steps up
offers hope for more fight against
multi-billion-
domestic revenue dollar illegal
wildlife trade
AIRLINK, the privately owned
Southern African regional airline,
will implement of a company-wide
programme involving training,
new processes and supply chain
interventions to identify and combat
illicit wildlife trade.
The illegal wildlife trade is valued
between USD $50-150 billion per year
and is one of the five most lucrative
global crimes. Illegal killing and
trading of wild animals is a global
crisis, with species being hunted to
extinction for their horns, skins and
teeth.
The programme, run by the
PAGE 02 PAGE 08
Cargo volumes Take advantage of
continue to the Volta Fair- Volta
drive African Devt Forum tells
airlines’ domestic airlines
recovery in THE Volta Development Forum (VDF),
a leading advocate for development in
September the Volta region, is urging local airlines
to take advantage of the upcoming Volta
PAGE 02 PAGE 04
News
Increase in TIN uptake offers hope for more domestic revenue
By Dominick Andoh digitalisation drive and its impact ratio is 14.3 percent compared to The Ghana story”, indicated that
info@aviationghana.com on domestic revenue mobilization, 27 percent in South Africa and the decision to replace the Ghana
G
Vice President, Dr. Mahamudu 34percent in advanced countries. Revenue Authority (GRA) issued
O V E R N M E N T ’S
Bawumia, said the setting up So most adults in Ghana are TIN with GhanaCard numbers
ability to now
of the Ghana.gov platform to outside the tax net and compliance for tax purposes has increased the
identify adults for
facilitate public services and is low. number of adult population with
tax-paying purposes,
using the GhanaCard as unique direct payments into government At the beginning of 2017, only tax numbers from 4percent to 86
Tax Identification Numbers, is accounts, and the GhanaCard 4percent of the adult population percent.
expected to drastically increase have been real game changers. had Tax Identification Numbers With a large informal sector,
the contribution of domestic tax “With the Ghana.gov platform, (TIN). Broadening the tax net the difficulty with mobilizing
to the country’s revenue envelope. all payments to government on is imperative. In this regard, a domestic revenue has been a
The increase in the percentage the platform will go directly into number of digital initiatives have puzzle for many governments.
of people with Tax Identification government accounts. It also been implemented to broadening This is further compounded by the
Numbers (TIN) from 4percent provides a feedback feature to the tax base and to create a limited number of professionals
to 86percent within the last four enable users report problems with vehicle for domestic revenue who pay personal income tax.
years, gives government hope public services to the relevant mobilization,” Dr. Bawumia said. In 2020, Personal Income tax
of increasing the country’s tax to authorities. Dr. Bawumia, who was accounted for only 1.2percent
GDP ratio from the current 14.3 Ghana has a major challenge speaking at Ashesi University (GH¢413.5million) of domestic
percent to 20% by 2023. in the area of domestic revenue on the theme “Transforming An revenue collection.
Explaining government’s mobilization. The tax to GDP Economy Through Digitalisation:
Cargo volumes continue to drive African
airlines’ recovery in September
Continued from page 1
AFRICAN airlines’ saw
international cargo volumes
increase by 34.6% in September,
the largest increase of all regions
for the ninth consecutive month.
The latest International Air
Transport Association (IATA) data
show that seasonally adjusted
volumes are now 20% above pre-
crisis 2019 levels but have been
trending sideways for the past six
months.
International capacity was 6.9%
higher than pre-crisis levels, the
only region in positive territory, should provide a boost for compared to the same month 2019, an improvement compared
albeit on small volumes. capacity. in 2019. This was on a par with to the previous month (14.7%).
Asia-Pacific airlines saw their In North American, carriers August’s performance (5.6%). International capacity was down
international air cargo volumes posted a 19.3% increase in Demand was strongest on the 4% compared to September 2019.
increase 4.5% in September 2021 international cargo volumes in large North Atlantic trade lane Latin American carriers
compared to the same month September 2021 compared to (up 6.9% vs September 2019). reported a decline of 17.1% in
in 2019.This was a slowdown September 2019. New export Performance on other routes was international cargo volumes in
in demand compared to the orders and demand for faster weaker. Manufacturing activity, September compared to the 2019
previous month’s 5.1% expansion. shipping times are underpinning orders and long supplier delivery period, which was the weakest
Demand is being affected by the North American performance. times remain favorable to air cargo performance of all regions. This
slowing manufacturing activity International capacity was down demand. International capacity was also slightly worse than the
in China. International capacity 4.0% compared to September was down 13.5% on September previous month (a 14.5% fall).
is significantly constrained in the 2019, a slight improvement from 2019. Capacity in September was down
region, down 18.2% vs. September the previous month. Middle Eastern carriers 20.9% on pre-crisis levels, an
2019. Looking forward, the European carriers saw a 5.3% experienced a 17.6% rise in improvement from August, which
decision by some countries in the increase in international cargo international cargo volumes in was down 24.2% on the same
region to lift travel restrictions volumes in September 2021 September 2021 versus September month in 2019.
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News
Take advantage of the Volta Fair-Volta
Devt Forum tells domestic airlines
Continued from page 1 the region is ready to accommodate enhance the success of the Volta Planning Officer,Rev. Steven
both participants and travellers, Trade and Investment Fair” he Adzah Tetteh, said that all signs
Trade and Investment Fair in Ho
citing operations such as the recent added. pointed to the fair being a massive
to enhance business and make the
test flights to Ho Airport. “It is rather worrying that many success and that the flights would
fair more accessible to visitors.
“In just over a week, the Volta months after these test flights and be an added advantage.
The Fair, which will be the fifth
Region will host its Fifth Trade all the promises that followed, the “It is likely some airlines
in two decades, and it is expected
and Investment Fair, which will be 25- million-dollar Ho Airport has will take advantage to begin
to bring roughly 300 exhibitors
open to the corporate world. This since not been operationalised” he operations in the Region. I believe
and over 10,000 people to the Ho
trade event will bring together lamented. it will be excellent. A lot of people
Sports Stadium from November
hundreds of exhibitors, as well “As for the Volta Development are coming and if we can have the
15, 2021.
as key business and investment Forum, he added, it will be in airport open and flights come in,
Domestic airline operators
figures, to highlight the Volta our best interest to know from people all over Ghana, I believe,
should use the fair as an
Region’s commercial potential the government and the Ministry will be here,” he said. (Source:
opportunity to create flight lines
once again,” he stated of Transport, why the Airport GNA)
to the regional capital.
“It is, therefore, appropriate has since not been opened for
The VDF’s Executive Director,
to say that the airport, when commercial flights.”
Mr Agboka Dzegede, stated that
fully operationalised, is going to The Regional Economic
Tourism
Climate Emergency is a bigger threat
than Covid- UNWTO Secretary General
T
HE head of the on sustainability”, Pololikashvili the Glasgow Declaration on “We need to invest in making
United Nations World said. Climate Action in Tourism at the sure destinations are great places
Tourism Organization He told delegates that the United Nations Climate Change to live and not just great places to
has warned that the recent Rome Leaders Declaration Conference COP26 on Thursday visit.”
“climate emergency is a bigger issued by the G20 specifically (4 November). Nigel Huddleston MP, UK
threat than Covid”. emphasized the need to restore The WTTC is also planning to Tourism Minister, agreed, saying:
Zurab Pololikashvili, Secretary- travel and tourism, which in turn launch the Net Zero Roadmap for “The partnership between private
General of UNWTO, said the can help developing economies. Travel & Tourism, to support the and public sectors is spurred by
pandemic has hit tourism harder He said public investment will industry in combatting climate the consumer.”
than any other sector. Tourism “encourage and leverage” private change, as part of the sector’s drive He said his government can
needs support from governments, investment all over the world, towards net zero by 2050. offer tax incentives to encourage
through stronger public-private adding: “Tourism can benefit if The initiative is being run sustainable developments, such
partnerships and through more governments deliver the right in collaboration with the UN as deductions for solar power and
and better-targeted financing support. Environment Programme (UNEP) electric vehicle charging points.
investments, to rebuild in a “Going back to the old normal and professional services and Rita Marques, Secretary of State
sustainable and inclusive way. is not an option.” consulting experts Accenture. for Tourism of Portugal, outlined
He made his comments during He also said tourism represents Julia Simpson, WTTC President how her country is investing in
the UNWTO, WTTC & WTM a risk-free investment opportunity and CEO, told the summit: “We green services and new ways
Ministers’ Summit, held on the and highlighted the need to invest have no alternative; we have to go to develop tourism across the
second day of WTM London, with in education and youth on the way green.” seasons.
tourism ministers from across to net zero. She said sustainable growth is a Massimo Garavaglia,the Italian
the world discussing investing in The UNWTO, World Travel key priority for the WTTC, adding: Minister for Tourism, talked about
tourism’s sustainable future. & Tourism Council (WTTC) “Investors and the public demand how Italy is tackling overtourism
“This summit gives us the and other tourism and travel that we invest to protect the planet in places such as Venice and
chance to strengthen our advocacy stakeholders will officially launch and people. Florence, to encourage visitors to
explore other parts of Italy and its
varied attractions.
Dr Khaled El-Enany, Minister
of Tourism and Antiquities of
Egypt – which will host the Cop27
climate conference next year –
highlighted Egyptian sustainable
initiatives, such as a project to
protect the reefs of the Red Sea.
Memunatu Pratt, Minister of
Tourism and Culture of Sierra
Leone, talked about how tourism
in the west African country is
recovering from civil war and the
outbreaks of ebola and Covid-19.
She said investments in
infrastructure, transport, health
care and education were being
integrated with the need to
develop sustainable tourism.
Federico González, Chief
Executive at Radisson Hotel
Group, highlighted the need
to ensure smaller hotel owners
understand how they make their
properties more sustainable, and
David Lavorel, Chief Executive
of airport technology firm SITA,
outlined how technology can
help the aviation sector optimise
its current assets to be more
environmentally friendly.
UNWTO will also partner with
Arabian Travel Market – the sister
event of WTM London – which
will take place on 8-11 May in
Dubai. (Voyagesafriq)
Advertorial
Getafe CF, RCD Mallorca, Real Betis and LaLiga
collaborate to support Children’s Home in Ghana
By Chris Koney and through it learn values such the Deputy Spanish Ambassador children had fun and enjoyed
as sportsmanship, team spirit, to Ghana for coming to inspire and themselves, and we hope to have
G
sacrifice, and solidarity. Values we engage our children in soccer as such Good moments with you in
ETAFE CF, RCD Spaniards and Ghanaians share’. part of CSR community outreach the future’.
Mallorca, Real Betis Silke Roesner, Director of programs in Ghana. I also thank Real Betis, RCD Mallorca,
and LaLiga joined Kinder Paradise, expressed her the Clubs,Real Betis, Getafe and Getafe CF, LaLiga donated football
forces to support gratitude to LaLiga and the Clubs Mallorca for blessing the children equipment, while GB Foods served
a Children’s Home, Kinder for the donation. ‘I am very grateful with sports paraphernalia, and lunch and as well, donated food
Paradise at the “One 4 One to the Laliga CSR project team and GB Food for the food ítems. Our packs to the Children’s home.
Community” event held at the
Children’s home in Prampram,
a coastal town outside Ghana’s
capital, Accra.
Kinder Paradise was set up to
support orphaned, vulnerable,
and street children by providing
a conducive home, care, and
education for self-reliance and
social integration.
Desmond Chiji, LaLiga Delegate
for Ghana and Nigeria, reiterated
LaLiga’s plan of supporting
community-based projects: “This
project is one of our ways of
contributing to the community,
we have carried out projects like
this in other parts of Africa, and
we will continue to do so. From
LaLiga we are very grateful for the
materials that Getafe, Mallorca,
and Real Betis have donated to
Kinder Paradise”.
Deputy Ambassador of Spain
to Ghana, Rafael Rodriguez,
who was present at the event
encouraged the children to enjoy
and have fun with football. ‘I
implore you at enjoy football,
Airlink steps up fight against multi-
billion-dollar illegal wildlife trade
Continued from page 01 across its entire supply chain to commitment to combatting illegal under IATA/UFW Illegal Wildlife
introduce measures designed wildlife trade under the 2016 Trade programme,” said Airlink
International Air Transport to thwart the scourge, which Buckingham Palace Declaration CEO and Managing Director,
Association (IATA) and United is especially acute in Southern and as a member of the United for Rodger Foster.
for Wildlife (UFW), will involve Africa, where it continues to Wildlife Transport Taskforce. Training, which will commence
training for all Airlink front-line destroy biological diversity and “Airlink took a stand against the this month, will be delivered
staff, including cabin crew, check- decimate species of animals in illegal wildlife trade by signing through a series of e-modules,
in, ground handling and cargo astonishing numbers. Allied to the landmark 2016 Buckingham each about an hour long, covering
personnel across the airline’s this, Airlink will also launch a Palace Declaration and becoming an introduction to the trade, what
entire network of South African customer awareness campaign a member of the United for to look for, how to report it and
domestic and Southern African for travellers and shippers of Wildlife Transport Taskforce. how to handle wildlife products.
regional destinations. airfreight consignments. Now we taking this commitment Refresher courses will be provided
In addition, Airlink is revising The programme marks even further by implementing the annually.
its policies and intervening the expansion of Airlink’s global best practices developed Continue on page 11
FEATURE
Africa Must Lead
there is no reason Africans should
not avail themselves of strategies
that are widespread in the global
financial system.
This lack of concern by African
on Capital Flight
states over illicit finance is
bolstered by the perception that in
most countries, most of the time,
tax evasion is not a matter that
registers with public opinion. At
By CARLOS LOPES & RICARDO were shown to be major offshore Nations Conference on Trade best, leaders assume that any effect
SOARES DE OLIVEIRA financial players, illustrating the and Development and the OECD, the issue has on public trust can be
T
hypocrisy underlying discussions which launched its program on tax managed. They are certainly wrong,
HE Pandora Papers of reform for the past decade. transparency in Africa in 2014. On especially regarding younger
revealed a wealth of And the Pandora Papers include the continent itself, independent voters, but this view shapes their
information about further evidence that Asian media are taking a larger role: non-committal approach.
the inner workings of financial centers also have become the Pandora Papers involved 53 The role of external organizations
offshore finance, leading to calls significant offshore players, African journalists working in 18 and African civil-society actors in
for international action to combat underscoring the global nature of countries, often under extremely combating offshore tax evasion and
tax avoidance and evasion. This the problem. difficult conditions. Civil-society avoidance is welcome. But African
has been a longstanding problem Some African initiatives organizations such as Tax Justice governments’ lack of initiative on
in Africa, yet organizations on demonstrated early leadership in Network Africa also are active the issue is regrettable. Worryingly,
the continent are not leading the assessing the issue and developing in this domain. But African the absence of a robust, collective
push for reform. potential solutions. The African governments and Africa-based African response invites outsiders
he Pandora Papers, the largest Tax Administration Forum, which international organizations have to shape the reform process in
investigative effort yet to shed was created in 2008 and includes refrained from major initiatives. ways that will most likely continue
light on the world of offshore 38 African states, has been a As a result, there is no to favor leading industrial powers.
finance, show just how serious noteworthy actor on tax reform multilateral African body leading This trend already is visible in
the challenge of illicit financial issues. The High-Level Panel on the way on the problem, and the the way the naming and shaming
flows is for Africa. The papers Illicit Financial Flows from Africa, African organizations that were of tax havens invariably targets
reveal that many prominent a joint effort of the African Union working on it actively five years microstates and ignores important
Africans hold assets in major and the United Nations Economic ago have assumed what can only enablers of illicit financial flows
financial centers abroad with the Commission for Africa, first be described as a low profile. It such as the US and the UK.
help of professional enablers who convened in 2012 and produced is hard to avoid the sense that While some African states will
provide them with secrecy, ensure a much-discussed report on the many of the continent’s rich and never be at the forefront of reform
asset protection, and secure tax subject in 2015. At that time, it powerful have little incentive to efforts in this area, those that have
exemptions. seemed offshore finance would compromise arrangements that been victimized by such flows
The investigation also be a regular part of African Union have enabled them to move, hide, must raise their voices and work
demonstrated that such offshore discussions. Unfortunately, it is and protect their assets. Moreover, together to push for global action.
services are not limited to disappearing from the agenda. their lawyers and financial advisers Current efforts include the African
the best-known tax havens. In the past few years, point out that many such practices Parliamentary Network on Illicit
International standard-setters leadership in the fight against are not only legal, but common Financial Flows and Taxation,
like the United States and the tax evasion and avoidance seems among multinationals active in which has representatives from 11
United Kingdom (directly and to have migrated to international Africa, especially in the extractive
through its overseas territories) organizations such as the United industries. According to this logic, Continue on page 11
Banking
UK firms to show how they
will hit net-zero, COP26
M
OST of the between the quantity of carbon it
UK’s big firms emits and the carbon it removes
and financial from the atmosphere, it is known
institutions will as net-zero.
be expected to show how they According to the treasury, Firms
intend to hit climate change and their shareholders will be left
targets, under proposed Treasury to decide how their businesses
rules. adapt to this transition, including
By 2023, they will have to set how they intend to decarbonise.
out detailed public plans for how And although the plans
they will move to a low-carbon will need to be published, the
future - in line with the UK’s 2050 government said “the aim is
net-zero target. to increase transparency and
To guarantee that the proposals accountability” and the UK was
world in becoming the “first-ever reporting standards.”BBC
are not just spin, an expert panel not “making firm-level net-zero
net-zero aligned global financial In total, 450 firms controlling
will determine the requirements commitments mandatory”. The
centre”. He said the changes would 40% of global financial assets
that they must meet. Any market will decide whether firms’
mean: “Better and more consistent - equivalent to $130tn (£95tn) -
commitments will be optional. plans are credible, the Treasury
climate data; sovereign green have agreed to commit to limiting
Green groups argue that this is said.
bonds; mandatory sustainability global warming to 1.5C above pre-
insufficient. Speaking at the COP26 climate
disclosures; proper climate risk industrial levels.
When a company or a country summit, Chancellor Rishi Sunak
surveillance; and proper global
achieves a net zero balance claimed the UK was leading the
The world’s largest banks and regulators say Banks’ exposure to
they’ll help curb emissions at COP26, but oil climate to be tested
funding continues. signed up will be tallied toward
a net-zero emission campaign,
AUSTRALIA’S central
and banking regulator are taking
bank
THE UK government has 45 countries is being hailed as the temperature of the financial
according to the finance promise,
announced that hundreds one of the top achievements of vulnerability to climate change of the
known as the Glasgow Financial
of the world’s biggest banks the United Kingdom, which country’s biggest lenders.
Alliance for Net Zero (GFANZ).
and their investors, with is hosting the United Nations’ The Reserve Bank of Australia and
The pledge, according to the
assets topping $130 trillion, COP26 summit in Glasgow, the Australian Prudential Regulation
group, will produce enough
have committed to limiting an ambitious summit aimed at Authority are conducting climate
scale to generate $100 trillion
greenhouse gas emissions. But bringing firmer commitments vulnerability assessments with the five
by 2050 to support investments
this pledge does not exclude from governments and the largest banks.
in new technology, as well as
the continued funding of fossil private sector to limit global They will look at how banks may
enforce avenues for corporations
fuels for the foreseeable future, warming to 1.5 degrees Celsius, adjust their business models in line
and financial institutions to
environmental groups were a target set in place at the Paris with risks posed by climate change and
restructure for a greener future.
quick to point out. COP six years ago. the resulting transition as well as the
Bloomberg New Energy Finance
The pledge by more than By 2050, all of the assets under economic consequences.
450 financial institutions from managed by the institutions that Continue on page 11 “The physical impact of climate
change, and the global transition
to a lower emissions economy, will
affect economic output, prices and
employment,” APRA and the RBA said
in a statement on Thursday.
“Climate change will be a driver of
change in the value of certain assets
and income streams, and therefore
poses a risk to financial institutions
and financial stability.”
APRA plans to finalise this
year guidance to financial entities
it supervises about identifying,
monitoring and managing risks related
to climate.
The results of its vulnerability
assessments with major banks are
expected to be published in 2022.
(Source: PerthNow)News
Airlink steps up fight against multi-billion-dollar illegal wildlife trade
Continued from page 08
“Our expanding route
network facilitates trade
and creates new economic
opportunities throughout
Southern Africa, but with this
growth comes a responsibility
to protect and preserve the
incredible biodiversity and
wildlife that makes Southern
Africa so unique. Airlink is
proud to be at the forefront
of this fight to stop the illegal
wildlife trade,” added Mr
Foster.
Certification of the
programme’s implementation
and completion of the Illegal
Wildlife Trade training modules
is subject to an independent
audit and will entitle Airlink to
display a special roundel as a
public hallmark signifying its
commitment to stopping illicit
wildlife trafficking.
Africa Must Lead on Capital Flight
Continued from page 09 and avoid a race-to-the-bottom Carlos Lopes, a professor Governance at the University of
countries. Other organizations competition to attract foreign at the Nelson Mandela Cape Town, is African Union High
that played an important direct investment. School of Public Governance Representative for Partnerships
role earlier, like the African Illicit financial flows rob at the University of Cape with Europe and a former vice-
Union and the UN Economic governments of the resources Town, is African Union High chair of the High-Level Panel
Commission for Africa, also they need to provide the public Representative for Partnerships on Illicit Financial Flows from
could reinvigorate their goods – education, health care, with Europe and a former vice- Africa. Ricardo Soares de Oliveira
commitment. Multilateral and trade and communications chair of the High-Level Panel is Professor of the International
endeavors such as the African infrastructure – that are vital on Illicit Financial Flows from Politics of Africa at the University
Continental Free Trade Area, for long-term economic growth Africa. of Oxford. Copyright: www.
which currently is being shaped and prosperity. Africa’s interest project-syndicate.org
with strong inter-governmental in curbing the problem is as About the writers:
support, could be used as obvious as the need for African Carlos Lopes, a professor at the
vehicles to standardize tax rules leadership to get it done. Nelson Mandela School of Public
The world’s largest banks...
Continued from page 10 Guidelines Organization have coal, oil CL00, -2.76 per cent, and on private-sector decision-making
agreed to strengthen the system’s gas NG00, +1.52 per cent, according in the absence of government
estimates average investment
governance through reviews to environmental groups. The mandates may stymie efforts to
requirements to hit net zero to
and disclosure standards. Unlike financial sector’s pledge may reduce emissions. According to the
be between $3.1 trillion and $5.8
corporations that emit pollution better align banks behind low- Energy Information Agency, fossil
trillion per year until 2050.
or use a supply chain that does, carbon financing starting now, but fuels accounted for over 74% of all
Financial regulators such as
banks’ contributions to climate banks are still free to finance coal, U.S. human-caused greenhouse
the Federal Reserve of the United
change are usually traced back to oil CL00, -2.76 per cent, and gas gas emissions in 2019. (BBC)
States, the Bank of England, and
the industries they support. NG00, +1.52 per cent. They’re also
the International Accounting
Banks are still free to finance concerned that relying too heavilyAfrica Economy
IMF says Nigerian
banks closed 234
branches, 649 ATMs
amid COVID-19
pandemic
THE International Monetary Fund (IMF)
Nigerian banks to stop
has said Nigerian banks closed 234 branches
and 649 automated teller machines (ATMs)
in 2020 amid the COVID-19 outbreak.
The Bretton Woods institution which
accepting old £20, £50 said this in its 2021 Financial Access Survey
(FAS) released on Monday, noted that the
number of ATM points in Nigeria fell by 649
to 18,810 in 2020 from 19,459 in 2019.
notes Dec 31 Bank, alongside other Deposit
Money Banks in Nigeria, has
issued a deadline of December
According to the report, the number
of commercial bank branches in Nigeria
S
reduced by 234 to 5,158 in 2020 from 5,392
31, 2021 for acceptance of in 2019.
TARTING from Bank Plc, disclosed this in the stated denominations The survey showed that the number
December 31, 2021, an email to its customers on from the public to enable the of borrowers from commercial banks
some Deposit Wednesday titled ‘Withdrawal proper conclusion of cash decreased to 29.61 per 1,000 adults in 2020
Money Banks in of old 20 and 50 GBP notes evacuation. from 25.42 per 1,000 adults in 2019.
Nigeria say they will no from circulation’. “Thus, we advise you to According it, outstanding deposits
longer be accepting old It said, “The Bank of use or deposit your paper with commercial banks per percentage
dollars and pounds notes to England has announced the GBP notes into your Fidelity of gross domestic product (GDP) rose to
enable a proper conclusion of withdrawal of paper £20 and Bank domiciliary account by 20.50 in 2020 against 16.31 in 2019, while
cash evacuation. £50 notes after September 30, December 31, 2021 to avoid outstanding loans from the deposit money
Specifically, they said old 2022. A year’s notice has been a loss in the value of your banks increased to 12.93 percentage of GDP
£20 and £50 notes will be provided to customers and the money.” in 2020 from 11.80 in 2019.
phased out. global banking community.
The IMF further noted that the 2021 round
One of the banks, Fidelity “In view of this, Fidelity
of the Financial Access Survey (FAS) takes
place in the second year of the COVID-19
pandemic, collecting data on access to and
Nigeria: Five Nigerian Banks Paid N1.46 use of financial services amid the crisis.
It said the 2021 FAS round offers a glimpse
billion Fine For Forex Infractions, Others of what has happened during the pandemic
on the financial access front.
THE Central Bank of Nigeria Specifically, the CBN The lender was fined On financial access during the pandemic,
(CBN) and the Securities fined GTCO N692million for N230 million for an alleged the IMF said aggregated FAS data from the
and Exchange Commission violating its rules on certain contravention of extant forex 2021 round do not show major disruptions
(SEC) have sanctioned five forex transactions carried out regulations from January 2013 in the access to and use of financial services
major banks for violating by some betting and gaming to July 2020. at commercial banks even though country-
foreign exchange guidelines companies. It was also fined N1 million level data reveal some varying outcomes.
and anti-money laundering The tier-1 lender was also for administrative infractions For low- and lower-middle-income
regulations, among others. fined N2million for non- in the Retirement Savings economies, the number of commercial bank
The affected banks include refund of interest on debit of Account (RSA) transfer during branches per 100,000 adults and ATMs per
Guaranty Trust Holding non-interest-related charges the fourth quarter of 2020. 100,000 adults — two FAS indicators for the
Company Plc (GTCo), United imposed on non-funded Stanbic IBTC, in its UN Sustainable Development Goals (SDGs)
Bank for Africa Plc (UBA), accounts. audited half-year ended Target 8.101 — have remained stable at 12
Access Bank Plc, Stanbic IBTC UBA was fined the sum June 30, 2021 results, said, and 23 respectively over the past few years,
Holdings Plc and Fidelity of N273 million for only “Penalty imposed by the CBN with a slight increase in 2020.
Bank Plc. two market infractions following an alleged unfair According to the report, the average
According to the half-year – N260million for forex termination of employment of number of deposit and loan accounts
2021 financial results filed documentation lapses in former employee.” continued to grow in 2020 across all country
with the SEC, the five banks respect of some customers’ Access Bank reported income groups.
paid a total fine of N1.46billion accounts and N13 million N189.65 million fine in the Also, the number of deposit accounts per
for the infractions. for non-verification of a period under review. 1,000 adults grew at a higher rate than in
In line with regulatory customer’s identity and delay The CBN imposed N100 the previous year in upper-middle-income
rules, banks are required in filing the related transaction million fine on the bank in economies.
to include sanctions and report. respect of failure to comply In terms of financial services usage, the
fine imposed on them by The CBN and SEC imposed with its guidelines on report added that outstanding amounts
regulatory agencies in their the sum of N233 million on Diaspora remittances. Source: of both deposits and loans grew faster on
audited financial reports. Stanbic IBTC Holdings in Biz Watch Nigeria) average in 2020, relative to the previous
Among the five lenders, the period under the review, year in all country income groups. (Business
GTCO paid the highest fine. according to the filing. Hallmark)FEATURE
Toward European
that no one is left behind will
almost certainly derail the climate
agenda.
But to make this case to the public,
we must emphasize a longer-term
Green Cohesion
perspective, reminding people
that the costs associated with
the green transition will be but a
fraction of the catastrophic costs
we will face if we fail to address
investment in sustainability in accelerated investment, including
By LILYANA PAVLOVA climate change. The power of this
economically weaker regions. by crowding in private capital.
economic logic is why we at the EIB
A
That is why the European Now, these instruments will
are confident that we can increase
S a new strategy Investment Bank is rethinking its complement the EU’s Recovery
our lending to cohesion regions
outlined by the own “cohesion orientation,” as and Resilience Facility and Just
and expand the green share of our
European Investment outlined in a new paper examining Transition Mechanism.
loan portfolio to 50% by 2025. The
Bank notes, the our investments in less-developed Although the EU’s less-
key is to target support carefully,
European Union’s regional parts of the EU. Our ambition is developed regions are mostly
identifying projects that serve both
funding policies must evolve to to raise the amount we lend in in Central and Eastern Europe,
objectives. There is no shortage
address multiple goals at once, these regions to 45% of our total parts of Portugal, Greece, and the
of investment opportunities in
starting with the transition to a investments, and to expand our southern regions of Italy and Spain
clean mobility, energy efficiency,
net-zero economy. Cohesion and support to include all regions have long histories of low growth
renewable energy, water and
climate action are now two sides where GDP per capita is below the and are also still catching up.
wastewater management, and
of the same coin. EU average. Moreover, many formerly wealthy
the industries at the center of any
Many of the European Union’s Using public finance to draw industrial regions are struggling
circular economy, not least food
poorer members are in a double the EU closer together is one of the to cope with globalization and
and agriculture.
bind. Though these countries are EIB’s founding missions. Over the technological change. In the EIB’s
In Europe, at least, the potential
among those most exposed to course of the EU’s last seven-year new approach, cohesion regions
disruption to jobs and industries
the destructive effects of climate budget period (2014-20), projects (with GDP per capita below 75%
from the digital transition is
change, they also face greater risks in cohesion regions accounted of the EU average) will receive up
often overshadowed by the
from the shift to a green, zero- for 30% of EIB lending – a total to 23% of our total EU lending by
decarbonization debate. But the
emission, digital economy. of €120.8 billion ($139.6 billion), 2025.
structural gaps in digital activity
To achieve a smooth and just and those investments paid off But the European Commission
and innovation between cohesion
transition, these countries will handsomely. Our internal models has also identified “transition
regions and the rest of Europe are
need investments geared toward show that our lending in cohesion regions” with incomes around 75-
significant. According to the EIB’s
their specific needs. Historically, regions over this period will boost 100% of the EU average as a new
2020 Investment Survey, 63% of
much of the public investment in growth by at least half a percentage vulnerable group. These regions
firms in Europe’s less-developed
the EU’s poorer countries has been point and employment by at least – which can be found in countries
regions were not engaged in any
in trade-related infrastructure two-tenths of a percentage point ranging from France and Spain to
“innovation activities.” And even
such as highways and railways. each year for the next 30 years. Finland and the Netherlands – will
among large firms, the proportion
But these growth-enhancing I have seen the positive need targeted support to deal with
of those pursuing innovation was
investment strategies now need to effects of EU cohesion policies challenges such as dependence
significantly lower than elsewhere
evolve to help everyone manage firsthand through my previous on low-tech manufacturing,
in Europe (39% compared to 52%).
the costs of the green transition, experience as Bulgaria’s minister rising unit labor costs, relatively
New policies are needed to help
which will require new forms of regional development and low educational attainment, and
these regions spur innovation,
of infrastructure and measures head of the managing authority declining industrial employment.
raise income levels, and adjust to
to support workers in carbon- for regional development. Fortunately, there need not
the digital age.
intensive industries. Financial instruments like be any contradiction between
As part of our new approach
For Europe to carry out its EIB loans, guarantees, equity cohesion and ambitious climate
to cohesion, we plan to tackle
ambitious climate agenda, it must investments, advisory services, goals. In fact, the two go hand in
this problem by helping
address the relative paucity of and partnerships have materially hand, because a failure to ensure
mid-cap companies in less-
developed regions adopt proven
technologies, conduct research
and development, and access
financing (including by lending
to them directly or through
intermediated programs). Mid-
cap companies are particularly
important, because research shows
that they have strong positive
effects in their communities.
Ultimately, the purpose is not
just to help cohesion regions. It is
to bring Europeans closer together
and strengthen the unity that
underpins the EU.
Lilyana Pavlova is Vice
President of the European
Investment Bank.You can also read
